Kingsport-based Eastman Chemical Company (EMN) specializes in chemicals, plastics, and fibers, serving diverse industries worldwide with a market cap of $11.3 billion. It is expected to announce its Q2 earnings after the market close on Thursday, July 25.
Ahead of the event, analysts expect Eastman Chemical to report a profit of $2 per share, up marginally from $1.99 per share reported in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS projections for the past four quarters.
Despite its adjusted EPS for the last reported quarter declining by 1.2% annually to $1.61, it exceeded the consensus estimates by 14.2%.
Looking ahead to fiscal 2024, analysts expect Eastman Chemical to report an EPS of $7.69, up 20.2% from $6.40 in fiscal 2023. Its fiscal 2025 EPS is projected to grow 19.1% annually to $9.16.
EMN stock has gained 6.3% on a YTD basis, underperforming the S&P 500 Index’s ($SPX) 17.1% gains but exceeding the S&P 500 Materials Sector SPDR’s (XLB) 2.8% returns during the same time frame.
Investor interest in EMN stock was sparked by its resilience in 2023, generating $1.4 billion in operating cash flow amid volume challenges and reduced costs by $200 million. However, it faced headwinds due to lower selling prices, weak market conditions, and customer inventory destocking.
Fiscal Q1 showcased strong sales and earnings growth in specialty products, alongside successful production scaling at the Kingsport methanolysis facility, projecting $75 million additional EBITDA for 2024. Moreover, the U.S. Department of Energy's $375 million investment in a Texas recycling project further bolstered EMN stock, triggering a 4.2% stock surge post-announcement on March 25.
The consensus opinion on Eastman Chemical Stock is moderately bullish, with a “Moderate Buy” rating overall. Out of the 16 analysts covering the stock, seven recommend a “Strong Buy,” one advises “Moderate Buy,” and eight suggest a “Hold” rating.
The average target price for Eastman Chemical is $108.88, indicating a potential upside of 13.7% from the current price levels.
On the date of publication, Sristi Jayaswal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
